LONDON, April 23 (Reuters) - Eurozone government bond
yields fell slightly on Tuesday as traders increased bets on
rate cuts from the European Central Bank, while eyes turned to
Purchasing Managers' Index data for hints on how fast rates may
fall.
ECB officials are sticking to plans to begin lowering
interest rates from their record high in June, with markets now
pricing in around 78 basis points (bps) of easing this year, or
around three quarter-point cuts.
Germany's 10-year bond yield, the benchmark for
the euro zone bloc, was last down 1.5 bps at 2.47%.
Italy's 10-year yield was lower by 2.5 bps at
3.80%, and the gap between Italian and German bunds
narrowed by 1 bp to 130 bps.
Germany's two-year bond yield, which is more
sensitive to ECB rate expectations, was down 1.5 bps at 2.96%.